PENNINGTON, N.J.–(Business Wire)–
Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT)
(“OPT” or “the Company”) announces its financial results for the year ended
April 30, 2010.

Fourth Quarter and Fiscal Year 2010 Highlights

* Revenue grew by 26% to $5.1 million for the fiscal year ended April 30, 2010,
compared to $4.0 million for the same period in 2009.
* Cash, cash equivalents, restricted cash and marketable securities of $66.8
million at April 30, 2010 (April 30, 2009: $82.7 million). Cash burn was $15.9
million in fiscal 2010, compared to cash burn of $19.5 million in fiscal 2009.
* Successful deployment and operation of a PowerBuoy system at the Marine Corps
Base in Hawaii, and the award of $380,000 in additional funding for the project.
On-station operation of the PowerBuoy is now entering its eighth month.
* Progress made with construction of our first PB150 PowerBuoy-scheduled for
in-ocean testing off the coast of Scotland in the second half of 2010.
* Signed a Memorandum of Understanding with the State of Oregon, setting forth
an approach for developing utility-scale wave power projects within the State`s
coastal waters, including a proposed 100 MW wave power station near Coos Bay,
Oregon.
* Successful completion of in-ocean trials of OPT`s proprietary Undersea
Substation Pod in Spain.
* Awarded new $2.4 million contract to provide PowerBuoy systems to the US
Navy`s Littoral Expeditionary Autonomous PowerBuoy (“LEAP”) program for homeland
security.
* Received $1.5 million contract from the US Department of Energy (“DoE”) for
development of OPT`s next generation PB500 PowerBuoy wave power system.
* Signed exclusive agreement to develop demonstration wave power station in
Japan with consortium of three Japanese companies, including Mitsui Engineering
and Shipbuilding.
* Award of A$66.5 million grant to OPT partnership with Leighton Contractors Pty
Ltd to build a 19 MW wave power project off the coast of Victoria, Australia. In
addition, received an award of €2.2 million from the European Commission to
deliver a PowerBuoy wave energy device with an innovative wave prediction
capability and a “wave-by-wave” tuning system. Both of these grants are
conditional on the achievement of certain milestones, including the receipt of
significant additional funding for each project.

Fiscal year 2010 also saw a strengthening of OPT`s management team with several
key appointments. Foremost among these, Charles F. Dunleavy was appointed OPT`s
Chief Executive Officer, having served as the Company`s Senior Vice President
and Chief Financial Officer since 2001, and as the Company`s Treasurer and
Secretary and a member of the Board of Directors since 1990. From 1993 to 2001,
he served as Vice President, Finance. During this time, Mr. Dunleavy had been
key to OPT`s progress in expanding operations in Europe, North America,
Australia and Japan, and the Company`s raising of over $140 million in equity
capital in the US and Europe.

Other key appointments to the management team included Angus Norman as Chief
Executive of Ocean Power Technologies Limited. Mr. Norman joined OPT from EDF
Energy where he held the position of Managing Director of Sustainable Solutions
and brings extensive leadership experience in the energy and renewable energy
generation sector, as well as a nearly 30 year record of acquisition, divestment
and project development in the energy, transport, minerals and infrastructure
markets.

In June 2010, OPT announced the appointment of Michael G. Kelly as Vice
President of Operations. Mr. Kelly joined OPT with 28 years of experience in the
marine industry, spanning design, manufacturing, deployment and field service of
large, complex ocean-based systems. The scope of this work has included the
management of international commercial and technical teams to deliver
best-in-class marine industry solutions within schedule and budget.

Also, in June 2010, OPT appointed Brian M. Posner to the position of Chief
Financial Officer of the Company. Mr. Posner joined OPT with over 25 years of
experience in both public and private companies, with a notable track record in
working with capital markets, regulatory and accounting matters and strategic
alliances. His career has encompassed NASDAQ-listed companies as well as
early-stage and publicly-held businesses. In addition, Mr. Posner served on the
audit staff of PriceWaterhouseCoopers, LLP where he had a diverse group of
clients in the manufacturing, banking and natural resources sectors.

Charles F. Dunleavy, Chief Executive Officer of OPT, said: “This has been a
pivotal year for OPT during which we made solid progress in advancing our
existing projects as well as achieving major breakthroughs in our target markets
worldwide. These were achieved against a background of a global credit crunch
that has constrained the adoption of new technologies. However, OPT`s strong
balance sheet, blue chip partnerships and progress in commercializing its
technology have served it well during the year. With the important strengthening
of our management team, we feel confident of our prospects for the year ahead
and are excited about upcoming achievements that we expect to report on several
fronts.”

Operational Review

The year ended April 30, 2010 represented another year of progress for OPT. The
Company achieved key milestones in a number of ongoing projects and established
strong foundations in new developments, which include:

HAWAII, US – OPT deployed an upgraded 40kW peak-rated PowerBuoy under its
ongoing program with the US Navy for the development and construction of wave
power systems at the Marine Corps Base in Oahu, Hawaii. The device has been in
operation since its deployment in December 2009, and is producing power in
accordance with expectations and testing protocols. In addition, the device has
successfully survived significant storm conditions. The Company also received
$380,000 in further funding for the commissioning and operation of this
PowerBuoy system.

OREGON, US – Construction of the steel structure for the first PB150 PowerBuoy
for a 1.5 MW commercial-scale project at Reedsport, Oregon was begun by Oregon
Iron Works, a prominent local company, and is advancing as planned.With support
from Pacific Northwest Generating Cooperative (PNGC Power) and funding from the
US Department of Energy, OPT continued to work extensively with interested
stakeholder groups at local, county, state and federal agency levels to develop
this project, and progress was made in the overall permitting and licensing
process. The project remains on schedule, with the PB150 construction expected
to be completed by the end of 2010 and ocean testing expected to commence in
2011. This project is expected to be expanded subsequently in a second phase to
a 10 PowerBuoy array connected to the west coast grid, after receipt of third
party funding for the project.

During the year, OPT also signed a Memorandum of Understanding (“MOU”) with the
State of Oregon to set forth an approach for developing wave power projects
within the State`s coastal waters. This MOU outlines important principles for
the potential development of future wave power facilities in Oregon. These
principles are expected to be first applied to the development of OPT’s Coos Bay
project in Oregon. The Company is studying the feasibility of building an OPT
wave power station near Coos Bay, Oregon, in phases up to 100 MW. The project is
in the initial stages of public and agency review.

SCOTLAND, UK – The construction of OPT`s first PB150 PowerBuoy has been
completed, while the energy conversion and power take-off sub-assemblies are
soon to be integrated into the buoy structure. OPT expects to conduct in-ocean
trials off the coast of Scotland in the second half of calendar year 2010.

CORNWALL, UK – The South West of England Regional Development Agency (“SWRDA”)
has placed a contract for the installation and commissioning of the
infrastructure, including onshore electrical equipment, for its planned facility
in Cornwall, England. Excavation at the site began in June 2010, and SWRDA
expects that the final cabling and subsea infrastructure will be installed by
the engineering contractor by the end of calendar year 2010. OPT has signed a
commitment agreement with SWRDA to advance the development of one of the four
wave power stations that are expected to comprise the Wave Hub – one of the
world`s largest proposed renewable marine energy projects. OPT was the first
company to sign the agreement, ratifying its long-standing involvement with this
project.

SPAIN – Under a contract with Iberdrola S.A., the Company completed in-ocean
trials of OPT`s Undersea Substation Pod (“USP”) product. The testing was
successful and opens a new revenue opportunity for OPT. The USP was designed
in-house by OPT for use in a utility-scale wave power station at a site
approximately three miles off the coast of Santoña, Spain.

On March 3, 2010, OPT announced the receipt of an award of €2.2 million under
the European Commission`s Seventh Framework Programme (FP7), by the European
Commission`s Directorate responsible for new and renewable sources of energy,
energy efficiency and innovation. The grant to OPT is part of a total award of
€4.5 million to a consortium of companies, including OPT, to deliver a PowerBuoy
wave energy device under a project entitled WavePort, with an innovative wave
prediction capability and a “wave-by-wave” tuning system. Conditional on the
receipt of significant additional funding, it is anticipated that this PowerBuoy
will be deployed at the Santoña site in Spain.

US NAVY “LEAP” PROJECT – During the fiscal year 2010, OPT won a new $2.4 million
contract from the US Navy to provide a wave energy conversion system for the
Navy`s LEAP program. This contract, to be performed over a one-year period, is
the initial award under a proposed four-year, $10-$15 million project to
establish a prototype for a near-shore maritime surveillance for homeland
security. Under the initial contract, OPT will provide its PowerBuoy wave energy
conversion technology for testing with sensor-based communications systems, with
the ultimate aim under the four-year program of developing a LEAP-based vessel
detection system testbed. The preliminary design phase work has been submitted
and is now under review. OPT expects to complete the initial $2.4 million
contract in the second half of calendar year 2010.

US NAVY DEEP OCEAN APPLICATION – Progress continued on OPT’s ongoing project to
provide the Company’s autonomous PowerBuoy technology for the US Navy’s Deep
Water Active Detection System for ocean data gathering. The current $3.0 million
contract was awarded in November 2008 following the completion of the initial
test phase work by OPT. Deployment of the enhanced device is scheduled for the
second half of calendar year 2010.

JAPAN – OPT signed an agreement in Japan for the development of the country`s
first utility-scale wave power station with a consortium of three Japanese
companies: Idemitsu Kosan Co., Mitsui Engineering & Shipbuilding Co. Ltd., and
Japan Wind Development Co. Subject to the successful identification of a project
site and completion of economic assessments, the parties plan to enter into an
agreement to build a demonstration plant with up to three OPT PowerBuoys. The
trial plant would provide the basis for the expected building of a
commercial-scale OPT wave power station with an initial capacity of 10 MW or
more – enough power for up to 3,000 households in Japan.

VICTORIA, AUSTRALIA – In November 2009, Ocean Power Technologies (Australasia)
Pty Ltd (“OPTA”) was awarded, in partnership with Leighton Contractors Pty Ltd
(“Leighton”), an A$66.46 million grant from the Federal Government of Australia
towards building a 19 MW wave power project off the coast of Victoria,
Australia. The award was one of four renewable energy projects approved by the
Federal Government of Australia after considering over 30 applications, and is
the only wave energy venture to receive a grant. The funding is intended to be
used to advance the construction of a wave power station to be built in three
phases to supply electricity to up to 10,000 homes. The project is to be
developed by a special purpose company, Victorian Wave Partners Pty Ltd, that
was formed by Leighton to collaborate with OPTA in pursuing wave power projects
off the east and south coasts of Australia. The grant is conditional on the
signing of a Funding Deed which will set out the terms of the grant, including
funding milestones. Victoria Wave Partners is seeking the significant additional
funding required to enable the completion of the 19 MW wave power station.

PB500 DEVELOPMENT PROGRAM – OPT`s technical achievements were recognized by the
US Department of Energy in awarding the Company $1.5 million for the development
of the next generation PowerBuoy wave power system. The DoE grant will be used
to help fund the scale-up of the power output per device from the current level
of 150kW to 500kW. In addition, the technology development effort will focus on
increasing the power extraction efficiency and reliability, and will utilize an
enhanced “Design-for-Manufacture” approach.

Financial Review

Revenues increased by $1.1 million in fiscal 2010, or 26%, to $5.1 million as
compared to $4.0 million in fiscal 2009. This growth primarily reflects an
increase in revenue from the US Navy under the Deep Water Active Detection
System and LEAP programs, for which OPT provides its autonomous PowerBuoy
technology. In addition, there was also an increase in revenue related to OPT`s
project off the coast of Reedsport, Oregon. The growth in revenue generated by
these projects was partially offset by the decline in revenue from OPT`s
utility-scale project in Spain and the Company`s utility PowerBuoy project with
US Navy at the Marine Corps Base in Hawaii, which is now in operation.

The Company`s contract order backlog at April 30, 2010 was $5.7 million,
compared to $7.5 million at April 30, 2009. Most of this backlog is expected to
be recognized as revenue during the fiscal year ending April 30, 2011.

The net loss attributable to OPT for the year ended April 30, 2010 was $19.2
million, compared to a net loss of $18.3 million in the prior year. The increase
in the fiscal 2010 net loss was primarily attributable to costs incurred in the
Company`s product development programs, which were $13.0 million for fiscal 2010
compared to $8.4 million for fiscal 2009 and a decrease in interest income due
to a decrease in cash equivalents and marketable securities, as well as lower
yields. The Company`s product development efforts were focused on increasing the
output and reliability of the PowerBuoy technology. These factors were offset by
an increase in gross profit, an increase in foreign exchange gains and a
decrease in selling, general and administrative costs. Other income also
increased in the year ended April 30, 2010 due to the favorable settlement of a
claim against a supplier of engineering services during the first quarter of
fiscal 2010.

The Company finished the year with a strong balance sheet. On April 30, 2010,
total cash, cash equivalents, restricted cash and marketable securities were
$66.8 million, compared to $82.7 million on April 30, 2009. Total “cash burn”
for fiscal 2010 was $15.9 million, compared to $19.5 million for fiscal 2009.
The Company`s cash equivalents and investments are highly liquid investments
consisting primarily of term deposits with large commercial banks and U.S.
Treasury notes.

Additional information may be found in the Company`s Annual Report on Form 10-K
filed with the U.S. Securities and Exchange Commission. The Form 10-K may be
accessed at www.sec.gov or at the Company`s website in the Investor Relations
tab.

Webcast Details

OPT will host an audio webcast to review its results, on Tuesday, July 13, 2010,
at 10:00 a.m. Eastern Time (3:00 p.m. BST). Charles F. Dunleavy, Chief Executive
Officer, and Brian M. Posner, Chief Financial Officer, will host the webcast.
Investors and other interested parties may access the webcast by visiting the
Company’s web site at www.oceanpowertechnologies.com and clicking on the
Investor Relations tab, then Webcasts and Presentations.

Forward-Looking Statements

This release may contain “forward-looking statements” that are within the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements reflect the Company’s current expectations about its
future plans and performance, including statements concerning the impact of
marketing strategies, new product introductions and innovation, deliveries of
product, sales, earnings and margins. These forward-looking statements rely on a
number of assumptions and estimates which could be inaccurate and which are
subject to risks and uncertainties. Actual results could vary materially from
those anticipated or expressed in any forward-looking statement made by the
Company. Please refer to the Company’s most recent Form 10-K for a further
discussion of these risks and uncertainties. The Company disclaims any
obligation or intent to update the forward-looking statements in order to
reflect events or circumstances after the date of this release.

About Ocean Power Technologies

Ocean Power Technologies, Inc. (Nasdaq: OPTT and London Stock Exchange AIM: OPT)
is a pioneer in wave-energy technology that harnesses ocean wave resources to
generate reliable, clean and environmentally-beneficial electricity. OPT has a
strong track record in harnessing wave energy and participates in a $150 billion
annual power generation equipment market. The Company’s proprietary PowerBuoy
system is based on modular, ocean-going buoys that capture and convert
predictable wave energy into low-cost, clean electricity. The Company is widely
recognized as a leading developer of on-grid and autonomous wave-energy
generation systems, benefiting from over a decade of in-ocean experience. OPT`s
technology and systems are insured by Lloyds Underwriters of London. OPT is
headquartered in Pennington, New Jersey with offices in Warwick, UK. More
information can be found at www.oceanpowertechnologies.com.

Consolidated Balance Sheets as of
April 30, 2010 and April 30, 2009

April 30, April 30,
2010 2009
ASSETS $ $
CURRENT ASSETS:
Cash and cash equivalents 4,236,597 12,267,830
Marketable Securities 32,536,001 40,849,736
Accounts receivable 1,474,600 985,149
Unbilled receivables 448,686 988,418
Other current assets 1,005,885 1,082,696

Total current assets 39,701,769 56,173,829

Marketable Securities 28,865,046 28,619,528
Restricted cash 1,205,288 951,552
Property and equipment, net 710,563 897,718
Patents, net 1,036,881 909,727
Other noncurrent assets 1,458,646 1,241,552

TOTAL ASSETS 72,978,193 88,793,906

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES:
Accounts payable 1,843,378 908,837
Accrued expenses 4,092,113 3,760,039
Unearned revenues 1,101,541 281,570
Current portion of long-term debt 95,386 93,398

Total current liabilities 7,132,418 5,043,844

Other non-current liabilities 140,685 ─
Long-term debt 250,000 345,386
Deferred rent ─ 21,649
Deferred credits 600,000 600,000

Total liabilities 8,123,103 6,010,879

OCEAN POWER TECHNOLOGIES, INC.
STOCKHOLDERS’ EQUITY:
Preferred stock, $0.001 par value; authorized ─ ─
5,000,000 shares; none issued or outstanding
Common stock, $0.001 par value; authorized 105,000,000 shares; 10,391 10,210
issued and outstanding 10,390,563 and 10,210,354, respectively.
Treasury stock, 1,072 and 0 shares at cost, respectively (6,443) ─
Additional paid-in capital 155,726,672 154,568,931
Accumulated deficit (90,413,098) (71,242,791)
Accumulated other comprehensive loss (503,322) (553,323)

Total Ocean Power Technologies, Inc. stockholders’ 64,814,200 82,783,027
equity

Noncontrolling interest in Ocean Power Technologies 40,890 ─
(Australasia) Pty, Ltd

Total equity 64,855,090 82,783,027

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 72,978,193 88,793,906

Consolidated Statements of Operations
For the years ended April 30, 2010 and 2009

April 30, April 30,
2010 2009
$ $

REVENUES 5,101,311 4,049,445
COST OF REVENUES 4,298,955 4,840,403
Gross profit (loss) 802,356 (790,958)
PRODUCT DEVELOPMENT COSTS 13,001,550 8,372,244
SELLING, GENERAL AND ADMINISTRATIVE COSTS 9,063,482 9,529,071
Total operating expenses 22,065,032 17,901,315
Operating loss (21,262,676) (18,692,273)
INTEREST INCOME, net 1,032,484 1,672,350
OTHER INCOME 557,540 ─
FOREIGN EXCHANGE GAIN (LOSS) 540,644 (1,295,227)
Net loss (19,132,008) (18,315,150)
Less: Net income attributable to the noncontrolling interest (38,299) ─
in Ocean Power Technologies (Australasia) Pty, Ltd
NET LOSS attributable to Ocean Power Technologies, Inc. (19,170,307) (18,315,150)
Basic and diluted net loss per share (1.88) (1.79)
Weighted average shares used to compute
basic and diluted net loss per share 10,217,003 10,210,354

Consolidated Statements of Cash Flows
For the years ended April 30, 2010 and 2009

CASH FLOWS FROM OPERATING ACTIVITIES: April 30, April 30
2010 2009
$ $

Net Loss (19,132,008) (18,315,150)
Adjustments to reconcile net loss to net cash used in operating activities:
Foreign exchange (gain) loss (540,644) 1,295,227
Depreciation and amortization 365,755 299,405
Loss on disposals of property, plant and equipment 113,087 268,976
Treasury note premium/discount amortization, net 146,834 288,331
Compensation expense related to stock option grants and restricted stock 1,117,935 1,511,666
Deferred rent (21,649) 5,412
Changes in operating assets and liabilities:
Accounts receivable (474,407) 472,422
Unbilled receivables 603,765 (589,970)
Other current assets 77,278 140,418
Other noncurrent assets (202,731) (857,060)
Accounts payable 953,815 (354,740)
Accrued expenses 246,816 (454,682)
Unearned revenues 827,786 (418,182)
Other noncurrent liabilities 147,684 ─

Net cash used in operating activities (15,770,684) (16,707,927)

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of marketable securities (33,884,604) (124,675,859)
Maturities of marketable securities 41,838,886 67,151,702
Restricted cash (252,080) –
Purchases of equipment (239,449) (811,493)
Payments of patent costs (153,667) (243,941)

Net cash provided by (used in) investing activities 7,309,086 (58,579,591)

CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt ─ 250,000
Repayment of long-term debt (93,398) (42,801)
Acquisition of treasury stock (6,443) ─

Net cash (used in) provided by financing activities (99,841) 207,199

EFFECTS OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 530,206 (1,488,155)

NET DECREASE IN CASH AND CASH EQUIVALENTS (8,031,233) (76,568,474)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 12,267,830 88,836,304

CASH AND CASH EQUIVALENTS, END OF PERIOD 4,236,597 12,267,830

Ocean Power Technologies, Inc.
Charles F. Dunleavy, Chief Executive Officer
Brian M. Posner, Chief Financial Officer
+1-609-730-0400
or
Nomura Code Securities Limited
Juliet Thompson/Richard Potts, +44 20 7776 1200
or
Media:
Corfin Public Relations
Neil Thapar/Claire Norbury, +44 20 7596 2860

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